Stablecoins have been adopted cautiously amid regulatory concernsthe Federal Reserve from issuing a Central Bank Digital Currency , interest in CBDCs continues to grow globally.by the Bank for International Settlements , 94% of central banks are now exploring CBDCs, compared to 90% in 2021.
Here, it’s worth noting that many in the financial sector fear a CBDC could increase government surveillance and control, hampering innovation, and limiting freedoms. Hence, the latest report has come as a massive relief to market participants concerned about these implications.Interestingly, countries around the globe have been considering digital currencies for years now, with China being an early pioneer. Nigeria and the Bahamas were among the first to issue their own CBDCs too.
“As your President, I will never allow the creation of a central bank digital currency. Such a currency would give our federal government the absolute control over your money.”Stablecoin adoption lags behind In fact, as of May 2024, the total market capitalization of cryptocurrencies stood at $2.7 trillion. Stablecoins constituted only a small fraction, accounting for just 6% of the cumulative crypto market cap, which amounts to approximately $161 billion.